Ricardo Perez Garrido

The move, which, as the NYT underlines "expands Google’s business far beyond algorithm-driven ad auctions into a relationship-based business with Web publishers and advertisers", changes the nature of the ad business for Google once again, and creates a real giant in the growing business of intenet advertising. For those not sure of the potential that Google has to grow, this move means that they are now the real middlemen for the ad business, in a space where more and more attention from the customer is placed, in substitution of the TV.

This direct access is really one of the key questions, and John Battelle remarks it:"But will they trust Google? My sources told me that Google was building its own, now it's clear it wanted the relationships which came via a market leader", the access to the companies is key in this case. Battelle and Om Malik agree that the price tag probably comes from outbiding the competition (Microsoft?).

With this new move, Google connects with some of the key players in the advertising industry, and though its relations at this time can be difficult given the strong market power of the company, it might help them connect with those companies and build a lasting relationship that can help explore new opportunities in advertising styles that the current approach is not supporting (probably around branding and big companies).

Posted on 18 April 2007 in English, Buscadores / Search Engines

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